A mutual fund that selects investments based on a commitment to environmental principles may be described as a green fund.
Not all green funds stress exactly the same values. A fund that seeks environmentally friendly businesses - say those that use alternative fuels - may not be concerned about what those companies manufacture.
Another fund may avoid any company in what it considers an unacceptable industry, despite the company's individual environmental record. In every case, the fund's approach is described in its prospectus.
- Browse Related Terms: Aggressive-growth fund, Conscience fund, Diversified Mutual Fund, Emerging markets fund, Green fund, Sector fund, Sector Mutual Fund, Socially responsible fund